Investments in Indian startups grew to $4.2 billion in 2018, from $2 billion in the previous year, aided by policy reforms and technological innovations, according to the report released by NASSCOM.

“Adding over 1200 start-ups in 2018, India continues to reinforce its position as the third largest start-up ecosystem across the world, taking the total number of tech start-ups to 7200-7700,” the industry body said in a statement. Of these, 13%-15% were fintech startups.

NASSCOM said that the country’s startup ecosystem was at the threshold of the next wave of growth with total number of funding deals in Series C, D, E and F witnessing a growth of 250% from $847 million in 2017 to $3.0 billion in 2018. The amount of seed-stage funding stood at $151 million though the number of such deals rose sharply.

The report states that advanced tech startups grew 50% annually, helped by internet penetration, better infrastructure for digital transactions and government push for financial inclusion. The focus was mainly on Artificial Intelligence, Analytics, Augmented Reality/Virtual reality, Blockchain and Internet of Things, among others.

“Implementation of artificial intelligence is also becoming a norm, growing at 5-year CAGR of 54%-58%, witnessing over 120% growth in funding for AI startups,” the report said, adding that blockchain startups have observed funding of $2 -$11 million, growing over 500% year on year.

Debjani Ghosh, president, NASSCOM said, “The start-up landscape in the country is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues. Today, India is brimming with new ideas which need the right guidance and funding to be scalable for the market.”